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About Avalanche
Key Points
- Avalanche is a layer one blockchain that functions as a platform for decentralized applications and custom blockchain networks.
- It aims to unseat Ethereum as the most popular blockchain for smart contracts.
- Avalanche has a unique architecture consisting of three individual blockchains: X-Chain, C-Chain, and P-Chain.
- Each chain has a distinct purpose and uses different consensus mechanisms based on their use cases.
Founders
- Avalanche was launched by Ava Labs, founded by Cornell University professor Emin Gün Sirer, and Cornell University computer science PhD’s Kevin Sekniqi and
Introducing Avalanche: A Revolutionary Blockchain Ecosystem
Avalanche (AVAX): A Revolutionary Blockchain Ecosystem
Avalanche is a layer one blockchain that serves as a robust platform for decentralized applications and custom blockchain networks. As a formidable rival to Ethereum, it seeks to supplant the latter as the premier blockchain for smart contracts. By boasting a remarkable transaction output of up to 6,500 transactions per second, Avalanche aims to achieve unparalleled scalability without compromising performance.
Avalanche’s innovative architecture makes this possible. The Avalanche network comprises three distinct blockchains: the X-Chain, C-Chain, and P-Chain, each serving a unique purpose. This diverges significantly from the approach employed by Bitcoin and Ethereum, where all nodes validate all transactions. Furthermore, Avalanche’s blockchains utilize different consensus mechanisms tailored to their specific use cases.
Following its mainnet launch in 2020, Avalanche has been diligently cultivating a thriving ecosystem of decentralized applications (DApps) and decentralized finance (DeFi) solutions. Notably, prominent Ethereum-based projects, including SushiSwap and TrueUSD, have successfully integrated with Avalanche. Moreover, the platform continues to focus on enhancing interoperability between its native ecosystem and Ethereum, with a particular emphasis on the development of bridges that facilitate seamless interactions.
The Visionaries Behind Avalanche: Meet the Founders
Avalanche was launched by Ava Labs, founded by Cornell University professor Emin Gün Sirer, a veteran in cryptographic research, and Cornell University computer science PhDs Kevin Sekniqi and Maofan “Ted” Yin. Notably, Gün Sirer conceptualized a peer-to-peer virtual currency six years prior to the release of the Bitcoin whitepaper. He also contributed to research on Bitcoin scaling solutions and Ethereum before the notorious DAO hack in 2016.
From this research, a seminal whitepaper emerged, laying the groundwork for the establishment of Ava Labs in 2018. The project subsequently secured a seed round of funding in February 2019, boasting an impressive roster of investors, including Polychain, Andreessen Horowitz, and Balaji Srinivasan. In a remarkable display of market enthusiasm, Avalanche concluded its initial coin offering in a mere 24 hours in 2020, amassing a staggering $42 million in the process.
Avalanche’s Distinctive Edge: Unpacking its Uniqueness
Avalanche seeks to resolve the blockchain trilemma, which postulates that it is impossible for blockchains to simultaneously achieve a satisfactory level of decentralization, security, and scalability. This conundrum often manifests in exorbitant gas fees, as exemplified by the Ethereum network.
To address this challenge, Avalanche innovatively devised a trifecta of interoperable blockchains.
- The Exchange Chain (X-Chain) facilitates the creation and exchange of native AVAX tokens and other digital assets, adhering to a standardized set of rules akin to the ERC-20 standard on Ethereum. This chain leverages the Avalanche consensus mechanism to ensure seamless transactions.
- The Contract Chain (C-Chain) serves as a hub for smart contracts and decentralized applications, boasting its own Avalanche Virtual Machine, reminiscent of the Ethereum Virtual Machine. This enables developers to seamlessly port EVM-compatible DApps, fostering a rich ecosystem of decentralized innovation. The Snowman consensus mechanism underpins this chain’s operations.
- The Platform Chain (P-Chain) plays a pivotal role in orchestrating network validators, tracking active subnets, and enabling the creation of new subnets. Subnets, akin to validator cartels, comprise sets of validators that can validate multiple blockchains, although each blockchain is exclusively tied to a single subnet. The Snowman consensus mechanism governs the P-Chain’s activities.
This division of computing tasks facilitates elevated throughput without sacrificing decentralization. For example, private blockchains on the network could stipulate that subnet validators must maintain sufficient geographical decentralization or adhere to specific regulations. By adopting this modular architecture, Avalanche enhances its interoperability with other blockchains seeking to integrate with the Avalanche ecosystem. Moreover, the two distinct consensus mechanisms are tailored to accommodate the unique requirements of each blockchain, thereby optimizing their efficiency.
What Is the Circulating Supply of Avalanche (AVAX) Coins?
The total supply of AVAX is capped at 720 million, with a carefully crafted token distribution as follows:
- 2.5% – Seed Sale: 10% unlocked upon mainnet launch, with the remaining balance released quarterly over time.
- 3.5% – Private Sale: 10% unlocked upon mainnet launch, with the remaining balance released quarterly over time.
- 10% – Public Sale: 10% unlocked upon mainnet launch, with 15% released every three months over an 18-month period.
- 9.26% – Foundation Allocation: Released over a ten-year period.
- 7% – Community Endowment: Released over a twelve-month period.
- 0.27% – Testnet Incentive Program: Released over a one-year period.
- 5% – Strategic Partners: Released over a four-year period.
- 2.5% – Airdrops: Released over a four-year period.
- 10% – Team Allocation: Released over a four-year period.
- 50% – Staking Rewards
Currently, staking AVAX yields an attractive annual reward of 11.57%, with a minimum staking period of two weeks and a requisite minimum stake of 2,000 AVAX.
The Security Architecture of the Avalanche Network
AVAX is traded on the Exchange Chain, which operates on its proprietary Avalanche consensus mechanism. Unlike traditional proof-of-work or proof-of-stake models, the Avalanche consensus mechanism eschews a single leader node that processes transactions for validation by others. Instead, all nodes engage in simultaneous transaction processing and validation, leveraging a directed acyclic graph (DAG) protocol. This enables concurrent transaction processing, while random polling among validators ensures the accuracy of transactions with statistical certainty. Notably, this consensus mechanism dispenses with traditional blocks, facilitating immediate finalization and significantly enhancing the blockchain’s overall speed.
In Which Exchanges Can You Find Avalanche (AVAX)?
Avalanche (AVAX) is listed on prominent cryptocurrency exchanges, including Binance, Bitfinex, Gate.io, and Kucoin, ensuring seamless accessibility for traders and investors alike.
Avalanche’s Intrinsic Blockchains and Subnets
Avalanche boasts three primary, native blockchains, each meticulously designed to serve a distinct purpose.
The Pinnacle of Trading: Exchange Chain (X-Chain)
Designed to facilitate seamless fund transfers on the Avalanche network, the X-Chain serves a singular purpose. Notably, transaction fees are fixed at a nominal 0.001 AVAX, and the X-Chain boasts superior speed advantages over the C-Chain. Furthermore, it leverages directed acyclic graph (DAG) technology to optimize its operations.
The P-Chain: A Revolutionary Platform Chain
Employed for staking AVAX and facilitating the activities of validators. Users have the option to assume the role of a validator or delegate to one, thereby enabling the collection of their AVAX rewards on the P-Chain.
The Contract Chain (C-Chain): A Pivotal Component
Avalanche’s dedicated chain for decentralized finance serves as the premier platform for smart contracts and DeFi applications. Notably, the majority of Avalanche’s decentralized applications (DApps) are hosted on this chain, boasting seamless compatibility with MetaMask.
These three networks are secured and validated by the Primary Network, a
distinct subnet that serves as a linchpin. Notably, all custom subnets must
validate on the Primary Network by staking a minimum of 2,000 AVAX, thereby
ensuring a robust and secure framework.
Avalanche subnets, or subnetworks, constitute dynamic ensembles of validators collaborating to achieve consensus on the state of a multitude of blockchains. Each blockchain is validated by a single subnet, whereas a single subnet can validate multiple blockchains. Validator nodes have the flexibility to participate in multiple subnets.
Each subnet validator is motivated to comply with the unique security and resource requirements of their respective subnet, as they are incentivized to do so through customizable rewards, which may include token allocations, governance privileges, and other benefits.
Subnets seeks to introduce bespoke networks tailored to specific applications within the expansive Avalanche ecosystem. For instance, a particular application, product, or service may necessitate distinct validator properties, such as memory or internet bandwidth capacities. Validators that meet these stringent requirements can join the Subnet, thereby ensuring seamless operations. Furthermore, Subnets may feature a native token economy and customized fee markets, fostering a unique environment conducive to growth.
Avalanche Subnets also facilitate private blockchain development, wherein
pre-designated validators participate. These validators are the sole entities
with visibility into the content of that private blockchain, providing an
attractive option for organizations seeking to safeguard sensitive information.
Associated Resources:
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Delve into our comprehensive exploration of Avalanche.
Delve into our exclusive conversation with Emin Gün Sirer, the visionary CEO of Avalanche.
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